Mazda to invest US$600 million in engine factory in Vietnam

Japanese carmaker Mazda intends to invest around US$600 million in Vietnam to develop an engine factory, the Dau tu (Vietnam Investment Review) reported. The report said that Mazda had asked local authorities to recommend a suitable location for the plant; Hanoi or one of its surrounding provinces are being considered.
In October, Vina-Mazda, a member of the Truong Hai Auto Co., opened an assembly plant for Mazda sedans. The facility is located in the Chu Lai Open Economic Zone in the central province of Quang Ngai. The company invested VND750 billion (US$35.7 million) for the facility, which will be capable of assembling 20,000 units per year by 2016.
Joint ventures in Vietnam have traditionally only imported car components for assembly. When the new project gets underway, it will help develop the automobile industry, which has not yet taken shape in the country. Construction of the US$185.5 million Chu Lai-Truong Hai engine plant began in June. It is so far the only engine production project in the country, and once fully operational, it is expected to produce 20,000 engines per year. (October 23, 2012)